GUD Holdings (GUD)

GUD Holdings
’ results for the six months to December show that the consumer products manufacturer is firing on only one cylinder, UBS has said in a note to clients. The broker has kept its “buy" recommendation on the stock, but changed its 12-month price target to $8.90, down from $9.50.

UBS says the result featured a continuation of prior themes, such as a strong contribution from the company’s automotive products division, weak consumer demand and no rebound in water.

The broker thinks the stock is more likely to be purchased for its 9 per cent dividend yield in the near term as it is unlikely to see much growth until its Dexion business makes a meaningful contribution in about 12 months’ time.